July 2017 Status of “AF3”

A presentation used in China to support SIAF’s carve-out of its aquaculture business (into Tri-way Industries, Ltd.) is published here along with a status update about Aquafarm 3. Roughly half the slides are found in two columns on this page, and a second linked web page contains the rest. We have annotated the slides with current information about the operations and progress at Aquafarm 3.

Note: Not all slides from the original presentation are used on this web update. To view the original slides, as they were shown in China, you may download the original presentation.

Aquafarm 3 Operational Update

Slide 1: “Presenting the Hatchery”

These slides were presented to relevant organizations and individuals in China and Hong Kong during the carve-out process that created Tri-way Industries, Ltd. We’ve asked Dr. Ostrowski and other members of SIAF’s management team to provide context, and updated status about Aquafarm 3. The information and progress updates are shown below each slide or group of slides.

Slide 2:

AF3 (formerly Prawn Farm 2) is currently the primary shrimp hatchery for the MegaFarm project, producing yearly over 2 billion postlarvae (shrimp larvae that have just metamorphosed into tiny animals that resemble shrimp, from more unrecognizable larvae stages, the nauplii, zoea, and mysis stages). The hatchery at AF3 is targeted for construction to expand production to 5 billion postlarvae (“PL”).

Macrobrachium is a Caridean shrimp and is raised in freshwater (< 5ppt). The latter two species are Penaeid shrimps, and are typically raised in brackish (18 ppt) or saltwater (30-32 ppt), although some freshwater culture (5-10 ppt) does occur with amendments to certain mineral contents of the water.

In SIAF vernacular, Pacific white shrimp are often referred to as Mexican whites, and tiger shrimp as green prawns. There is also sometimes difference in referring to prawns and shrimp. In the US, the Pacific white shrimp and tiger shrimp are called shrimp, and the giant freshwater prawn is called a prawn. In Australia, the US-termed shrimp are called prawns, and the US-termed prawn is called a shrimp.

AF3 also conducts growout of shrimp, prawns, and fish in open and partially open ponds.

Slides 3-4: Aquafarm 3 Property

The main property of AF3 is located on 153 mu (or about 25.5 acres, or 10 hectares) of land in San Jiao town of Zhongshan City, PRC. An additional 250 mu of adjacent land operated by AF3 is contracted by other farmers for pond aquaculture.

Construction and development of AF3 began in 2012, with operations starting in 2013. Completion of build-out of AF3 is targeted by the end of 2018.

Not in this presentation is another 579 mu of contracted ponds managed by AF3 in Shenwan town, Zhongshan City beginning in 2014, using advanced SIAF pond technology called Open Dam Recirculating Aquaculture System (ODRAS). An additional 2,000 mu of ponds will be added by 2019 for cooperative farming using the technology.

The yellow building is the hatchery proper with connected storage and office space. It is a total 10,000 square meters.

The ponds in the foreground are used to treat the source water for the hatchery. The water is settled of solids and chlorinated to kill any potential disease vectors. Once chlorination is neutralized, it is ready for use by the hatchery.

Slides 5-7

Once hatched, larval shrimp and prawns are placed into 1,000-ton larval rearing tanks. They are maintained in a static system (with manual water exchanges occasionally) and aeration through metamorphosis (about 11-13+ days posthatch (DPH), depending upon water temperature). Their food is planktonic, including green &/or brown algae and brine shrimp (Artemia, sp.).

Once the shrimp reach metamorphosis, they are called postlarve (abbreviated in the industry as PL), and named successively after each subsequent day. So, PL1 is one day after metamorphosis (or about 12-14+ DPH), PL2 is two days after metamorphosis, PL3 is three days after metamorphosis, and so on.

PLs are generally kept through about PL6 or older as they are slowly transitioned onto pelleted feeds to replace algae and brine shrimp. PLs are normally sold from PL6 to PL15. The older the PL, the higher the price, and better transitioned onto pelleted feed.

Slides 8-9

The AF3 hatchery also has an equipped laboratory with a microscope to observe proper stage development of the larvae, analytical balance for weighing media and chemicals used to promote algae growth, a Laminar flow hood (low positive pressure) for chemicals mixing and bacterial plating, and a drying oven to dry glassware after distilled water washing.

Slides 10-12

As part of the hatchery system, there are also outdoor growing and holding ponds. Holding ponds are used to house broodstock (parent shrimp) obtained around February or March from SIAF broodstock suppliers. The ponds are covered with a slightly translucent plastic to retain heat within the ponds to allow maturation of the broodstock to continue unabated. Once the broodstock (females) are determined to be developing eggs well, both males and females are brought indoors for final maturation.

The wooden framework in the pictures serves as a prop for holding up translucent plastic which is draped over the entire pond during winter. This is not a permanent structure, and the plastic is meant to be taken down during the warmer and summer months.

Slides 13-18

In addition to the hatchery, in 2015-2016, AF3 began building its next generation Open Dam Recirculating Aquaculture System (ODRAS) using circular concrete growout ponds with a central drain for better cleaning of feces, debris, and uneaten feed. The combination of a circular shape, center drain and concrete lining results in overall better survival and growth of shrimp in ponds (dams, as denoted in Australia) compared to dirt ponds for several reasons. These growout ponds are linked to a series of oxidation ponds that may contain fish to eat uneaten feed and media to promote solids collection and ammonia removal, similar in theory to the indoor APRAS design. Water from these oxidation ponds is then recycled back to the growout ponds.

Slides 19-20

The growout ponds are also linked to a system of oval-shaped nursery ponds to mimic somewhat the indoor APRAS, phased growout, partial harvest concept to maximize production (MT/year) and yield (MT/unit area/year). PLs are stocked and raised until about 1 gram or larger, then transferred into the larger growout ponds. Nursery ponds are smaller to improve feeding efficiency of the young shrimp.

Slides 21-26

To extend the growing season to near year-round, the next generation of ODRAS, started in 2016-2017, targeted to cover ponds with a more permanent structure. To release heat during summer months, the sides of the structure are left open. During winter, the sides are closed off with plastic.

Slides 27-30

To further improve the design of the ODRAS, the growout ponds went through another generational development, improved with black plastic linings, or more correctly, High-Density-Polyethylene (HDPE), on pond bottoms. HDPE liners are smoother than concrete, easier to clean, and are easier on the bodies of shrimp. They are more economical to use on a larger scale than concrete. The ponds have concrete only on the banks of this design to ensure a stable surface for attachment of the liners and for integrity of the pond shape. Proper placement of aerators promotes circular movement of water to ensure optimum self-cleaning.

These HDPE lined ponds are currently being used to raise Pacific White shrimp which are amenable to such a design and can be raised at very high densities in this system.

Slides 31-43

The Pacific White shrimp accounts for about 3.2 million metric tons of the world’s 4.0 million metric tons of shrimp farm production annually. Broodstock (parent shrimp) are sourced from suppliers and brought into the AF3 hatchery and raised from egg through harvest. On average, with optimum temperature, white shrimp can be raised to harvest size (18.5 grams = 27/catty).

The “90 days” shrimp shown in the photo is approximately 150 DPH (25 days hatchery from egg, through larval, and PL15 stage + about 25-30 days nursery + 90 days in growout)

Note: catty in Cantonese is half a kilogram; jin, or gongjin, is a catty in Mandarin.

Workers spread out a large net from one end of the pond to the other and corral the shrimp to one edge to concentrate them for harvest. The shrimp are normally netted by hand and placed in plastic baskets for weighing. Some clients are interested in live shrimp, and are at the farm at harvest. Others come to see the quality (uniformity of size, level of body abrasions, overall color) before purchasing freshly killed.